Savannah morning news. [volume] (Savannah) 1868-1887, 1887-02-28
MAD LAND SPECULATION.
HOW THE TIDE HAS RISEN In
BIRMINGHAM.
Instances of Fictitious Increase OF VAL
ues-Absence of Cash in Transfers
Litigation Ahead
From tho .Ne,o York Times.

DIkMlNGHAM. ALA. fSO. I'LL LneTe
is any distinction In having been shaved
by barber worth $3.50, 900, can claim 1t.
He is black man, Is this barber; be used
to be slave. Napoleon Abercrombe,
that is his name, and he lives and shaves
down in Montgomery. Birmingham real
estate has made him his riches. Along
with another tonsorial artist of the Ala
bama State capital he "home-steaded"
some OF the acres on the mountains close
beside Birmingham, just before the land
specializing craze got under way here;
superannuated brother was given cabin
and put in charge. while the owners
themselves went on barbering tne good
natured MontgomervItes. Two or
three hundred dollars was the
amount that the partners invested. Five
or six years ago they were offered 81 200
apiece tor their interest. A year later
the offer rose 10 $4,000, and that was
doubled a month or two after, and so on
upward rose the figures till about twelve
months ago $150,000 cash was put at
their disposal if they would consent to
hand over their land titles. Last July the
$3.50, 600 rose to $500, 900, by Thanksgiving
it was 100000. and Christmas brought
along the rounded figure Of $500, 900.
Now $500, 900 is offered for the tracE They
still decline every proposition and talk
calmly of the million" that is sure to be
offered before next summer appears. 1t
is justice TO say that this rare fortune has
not yet made the gentlemen proud; my
barber accepted his dime Rratuity when
/ bade him good-day with about the same
amiability that shows itself in the New
York saloon where the razor wIelder is
seldom the possessor of 250c instead of
$3.50. 600.
This case is a fair illustration of the
way in which land has been sent kiting
way up above the clouds, and the way in
which, at the same time, colossal fortunes
have been piled up in this town. Tine
Magic City" is what the native loves to
call Birmingham; it does not require the
recitation of many instances TO show how
thoroughly the appellatlon is deserved.
And few of those instances l want to
give. In the business part OF the city are
two lots fifty feet wide and about nifty
feet deep. There is no special reason ap-
parent to make them exceptionally valua-
BILE. Some of the principal business
houses are within sight. There is just
one building on the entire block where
they are situated. A half dozen years
ago these lots sold for $50 apiece. Then
with the tide of speculation
they began to rise rapidly. The man who
paid $50 each for them sold to another
purchaser for 5000, and a little later was
glad to buy them bacs at $40 a front foot,
equal to $751; for the two. He made an
other trade and got 500 a foot, and then
bought once more at $3.50 front foot;
next he sold at $3.50, Tebought at $500,
sold again at $500, bought again at $500,
resold al $1,000, and now is afraid that he
cannot get the same thing back again at
a new offer OF 81, $50 front foot. He says
he knows where he can turn the property
over just as soon as he gets ii for $1,000
per front foot, or $50. 200 for 30 feet OF real
estate that he originally paid $12O for.
Such whirls in market value are dazzling,
omprehensibie-yet for all that they
are facts that stare one in the face
at every turn here. 1t is need
less to inquire the basis for it, the
reason for il, the sense OF 1t. Enough
for every local mind it Is to see that the
fact Is. Nowhere is itspolte to look the
gift horse in the mouth; here the simplest
gloss OF inquiry is rated treason. heresy,
the crime of all crimes the rankest. 1t
has been SHOWN in this correspondence
plainly enough, l tbink, that there is
nowhere here any substantial warranty
for the real estate values tnat obtain; IL
IS bootless, however, to elaborate on this
now; Birmingham's rare mineral wealth
and her iron-makiug advantages are in
dIsputable; but there is yet an abundance
OF bare land available in the very heart OF
the city, not halt-not fourth evan-of
the town territory is built upon or seems
likely soon to be built upon; homes should
be cheap, but-but they are not, and all
the logic in the world cannot just yet
avail to make them 81. Wherefore. all
regardless of the sense or the nonsense OF
it, let us consider the condition as 1t Is.
An elderly Baltimore man, named
Richardson. happening to pas THROUGH
Alabama six or eight years ago invested
$3.50 in little strip ofland, an acre or 30
close beside Birmingham. Soon after he
died, leaving "A widow with one daughter
and no abundance Of this worlds goods;
yet even in this circumstance they did not
deem the bit OF Alabama land as worth
attention. A fortnight ago, though, a
lawyer hunted them up, with the Infor-
nation That they could sell out their Bir-
mingbam interest for $4,000. Mother
and dauIhte are here now; since they
arrived $40 900 has been added to their
property IS market value; l believe, how
ever. they are waiting TO see the sum
grow 10 500, 600 and local advisers assure
them that they won't have long to wait.
A Selma citizen got entangled in his
business affairs couple OF years ago and
came TO Birmingham, leaving a Selma
bank in the lurch Tor $4,000. Little by
little he began to get an interest in Biz
minKham real estate, ana one day month
or 80 ago the Selma bank officers dIscOy-
cred that they could attach his property
aud help out their loss somewh hat. They
took what be had, estimating its value at
about 81 1000; before a sale could be made
according to law that $1,000 value had
jumped up TO Sc, 900; il now stands for $780,
600, and there is bright prospect Of a
bitter lawsuit TO determine to whom be-
longs the handsome profits involved, the
bank or the banks debtor.
A Cincinnati bank held a mortgage on
piece of Birmingham real estate for
81, $50, and decided to forecose AT
forced sale they squeezed $1,000 out OF
the property. That was q year ago.
Now the old owner OF the land turns up,
alleges that the bank did not treat
him fairly, and proposes TO sue for dam
ages 10 cover the difference between the
fee Of that mortgage and the land's pres.
ent valuation OF 30,000-the advance of
one year.
George n. Gilmer, OF Lowndes county.
few years ago bought 100 acres OF gov
ernment land on Red mountain, over
looking Birmingham; he paid 81 30 an
acre for it. In November, 1885, he want
ed to sell out the entire tract for $4,000,
and offered a Montgomery lawyer $1,000
commission TO find a purchaser at that
price. The lawyer couldn't do IT, and
MIR. Gilmer perforce held on. Now II has
a market value estimated at from $780, 900
TO 100000. Mr.. Gilmer still owns 1t all
save "A small portion no let go lately al
81 900 an acre.
- ~ ~. 49,.